Q: Introduction: Larissa has been talking with the company’s directors about the future of East Coast Yachts. To this point‚ the company has used outside suppliers for various key components of the company’s yachts‚ including engines. Larissa has decided that East Coast Yachts should consider the purchase of an engine manufacturer to allow East Coast Yachts to better integrate its supply chain and get more control over engine features. After investigating several possible companies‚ Larissa feels
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Question 1 (1 mark) The methods that a firm can use to evaluate a potential investment: 1) ‘Discounting’ Methods: Net Present Value (NPV): the present value of the future after-tax cash flow minus the investment outlay made initially. The decision rule for the NPV as follows: invest if NPV> 0‚ do not invest if NPV< 0 Internal Rate of Return (IRR): calculates the interest rate that equates the present value of the future after-tax cash flows equal that investment outlay;
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CASE STUDY ON CASH BUDGETING Party Favours Limited (PFL) distributes party supplies and novelties through a network of independent‚ dedicated sales people across Canada. PFL plans to expand its network of sales distribution network into western Canada and consequently forecasts sales to total $5.6 million and $5.8 million in calendar years 2011 and 2012 respectively. PFL has been in operation for over ten years‚ and therefore has a strong understanding of the seasonal sales cycle that party
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Tri Vi Dang Email: td2332@columbia.edu Columbia University Spring 2013 Corporate Finance (ECON W4280) Meeting time: Tu‚ Th 4.10-5.25 Meeting place: Hamilton 503 Office address: IAB 1032 Office hours: Th 11.00-12.00 and other times by appointment Course Description The aim of this introductory course in corporate finance is to provide students with fundamental concepts for understanding firms’ financing decisions and the basic tools for the valuation of a corporation. This course
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1. Calculate TRUST’s company after-tax WACC. The risk-free rate was 4.21%‚ the market risk premium was 6% and the company tax rate was 30%. The WACC should be rounded to four decimal places. After-tax WACC = rD (1-Tc) D/V + rE E/V rE = rf + βequity(rm – rf) rE = 0.0421 + 0.81(0.06) rE = 0.0907 E = number of outstanding shares x current share price E = 60 million x $3.43 E = $205.8 million D = $44 million bank loans + $1.2 million short-term hire purchase commitments D = $45.2 million
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CASE STUDY HOMEWORK CORPORATE FINANCE PROFESSOR: G. BERTINETTI STUDENT Albert Maurer 1 The Situation: In 2010 a new company was created in order to enter into the food industry. They spent many months in studying the market‚ engineering the products and the commercial strategy‚ find out the production plants. At the end of 2010 the business plan is ready and the company has already participated to an exhibition where many potential customers said to be very interested to the project
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Grading Summary These are the automatically computed results of your exam. Grades for essay questions‚ and comments from your instructor‚ are in the "Details" section below. Date Taken: 11/22/2014 Time Spent: 1 h ‚ 36 min ‚ 44 secs Points Received: 100 / 100 (100%) Question Type: # Of Questions: # Correct: Short 6 N/A Grade Details - All Questions Question 1. Question : (TCO C) Blease Inc. has a capital budget of $625‚000‚ and it wants to maintain a target capital structure of 60% debt
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The Handbook of News Analytics \ in Finance Edited by Gautam Mitra and Leela Mitra WILEY A John Wiley and Sons‚ Ltd‚ Publication Contents Preface xiii Acknowledgements xvii About the editors xix About the contributors xxi Abbreviations and acronyms xxv 1 Applications of news analytics in finance: A review Leela Mitra and Gautam Mitra 1.1 Introduction 1.2 News data ’ 1.2.1 Data sources 1.2.2 Pre-analysis’of news data 1.3 Turning qualitative text into quantified metrics and time-series
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To what extent does a mature and cyclical product market drive corporate restructuring? Use an extended example to discuss whether restructuring transforms market and financial performance. An organization which is operating in a mature market means that the product does not have the scope to grow anymore. The product has reached its peak‚ with no prospects to increase‚ as the product is has become most popular in the market and no one else will be willing to buy it. A cyclical market is one which
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MAF302 Corporate Finance Study Guide Important Instruction This study guide provides you of an overview for each of the topic taught in this unit. These overviews however are not sufficient to learn all the materials in each of the topic. I therefore would suggest you to follow the materials in lecture notes and workshops. It is also essential to read and consult the corresponding text book chapters to develop your concept and knowledge in this unit. You will also find some references
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